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Electric-Assisted Bicycle (e-Bike) Rebate
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Information for Individuals and Retailers
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The Electric-Assisted Bicycle Rebate (e-Bike Rebate) is designed to reduce the cost for Minnesota residents to buy a new e-bike at eligible retailers starting July 1, 2024.
The e-Bike Rebate provides a discount of up to $1,500 on a qualifying e-bike. The discount is 50-75% of a buyer's qualifying expenses, depending on their income. The rebate value cannot exceed the price of the e-bike.
Retailers and individuals (buyers) must apply to the Minnesota Department of Revenue to take part in the program. Total rebates are limited to $2 million per year in 2024 and 2025.
Key Dates for 2024
The online e-Bike Rebate application portal is expected to open:
- May 1 (at 8 a.m.) for retailers to apply for the program
- June 5 (at 11 a.m.) for individuals to apply for a rebate
We'll start issuing rebate certificates July 1 to approved individuals.
Note: We'll post links to the online applications on this page when they open. We can only accept applications through the online portals, and will not accept applications before the dates and times listed above.
e-Bike Rebate Process
- Individuals apply for a rebate certificate through the online rebate portal. Certificates are issued on a first-come, first-served basis. The number of rebates available is very limited.
- If approved, individuals receive the rebate certificate by email. They will then have two months to go to an approved retailer and purchase a discounted e-bike.
- Retailers apply the discount, listed on the rebate certificate, to the e-bike purchase. They will then have one month to request reimbursement through the retailer portal.
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The rebate certificate applies to a buyer's qualifying expenses — the sales price of a new e-bike and certain accessories purchased at the same time.
Qualifying e-Bikes
Any e-bike purchased under the rebate program must be new and meet the legal definition of an electric-assisted bicycle in Minnesota Statute 169.011, subdivision 27. This law defines an e-bike as a bicycle with two or three wheels that:
- Has a seat and pedals a rider can use with or without electric power.
- Fits the definition of a regular bicycle in Code of Federal Regulations, title 16, part 1512.
- Has an electric motor that does not produce more than 750 watts of power.
- Meets the requirements of a class 1, class 2, or class 3 electric-assisted bicycle in Minnesota Statute 169.011, subd. 15a-c.
- Has a battery or electric drive system that's been tested and approved by an independent safety lab.
Qualifying Accessories
Qualifying accessories are limited to bike helmet, lights, lock, luggage rack, basket, bag or backpack, fenders, or reflective clothing. The accessories must be purchased at the same time as the e-bike to qualify.
The number of rebate certificates issued each year is very limited based on the funds available. The legislation allocates $2 million per year in 2024 and 2025 for administration of the program and rebates. The program is set to expire in 2026.
Though the rebate lowers the purchase price, sales tax must be paid on the full retail amount of the purchase.
Frequently Asked Questions (FAQs)
When can I apply for a rebate certificate?
The application portal for individuals is expected to open June 5. For the latest information, sign up for email updates for e-Bike Rebate applicants.
What are the requirements to apply?
An eligible individual must:
- Be at least 15 years old at the time of application
- Be a Minnesota resident in the current year and previous year
- Not have been claimed as a dependent in the previous tax year
How much is the rebate?
An e-bike rebate certificate is valued at 50-75% of your qualifying expenses, up to $1,500. The percentage depends on your income. Qualifying expenses include an e-bike and certain accessories purchased at the same time. The rebate value cannot exceed the price of the e-bike.
Approved Retailers
We'll post a list of approved retailers on our website closer to the application date.
Can I purchase an e-bike from an online retailer?
You can use your rebate certificate at an online retailer if they are approved for this program. To participate, retailers must be approved and meet all other program requirements.
Can I apply the rebate to an e-bike purchased before I received a rebate certificate?
No. The e-Bike Rebate certificate can only be applied at the time of purchase.
How long do I have to use the rebate certificate?
You have two months to use the e-Bike Rebate certificate. The expiration date will be listed on the certificate, which cannot be used after it expires.
Will I receive Form 1099-MISC?
Yes, individuals who use the rebate on qualifying purchases will receive Form 1099-MISC for the value of their rebate. Use this form when filing your tax year 2024 income tax return.
When can I apply to be an approved retailer?
The application portal for retailers is expected to open May 1. For the latest information, sign up for email updates for e-Bike Rebate retailers.
What are the requirements to apply?
An eligible retailer must have been engaged in the business of retail sales of new electric-assisted bicycles (e-bikes) for at least 6 months before we certify you for this program.
Can online retailers participate in the e-Bike Rebate program?
Yes. To participate, online retailers must be approved and meet all other program requirements.
Can a customer apply the rebate to an e-bike purchased before they received a rebate certificate?
No. The e-Bike Rebate certificate can only be applied at the time of purchase.
What sales tax should be charged?
Retailers must collect sales tax on the full retail amount of the items sold.
